Par Value Definition

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Definition Of Par Value:

A value that is printed on the face of a stock or bond certificate when it is issued.
Par value is of little significance once the stock or bond begins trading because the price will be influenced by market activity. For a bond, the typical par value is $1,000; the typical par value for one share of stock is $1.Other definition of par value- Apparent worth or the nominal value shown on the principal ('face' or 'head') side of a bill of exchange, currency, security (stock/share, bond), or other type of financial instrument. The par value of a loan stock (bond, preferred stock/preference share) is the value at which it will be redeemed. Some jurisdictions allow shares to be issued with no par value (see no par value share). Par value is typically different from the market price. If the market price is higher than the par value, the difference is called a 'premium;' if it is lower, the difference is called a 'discount.' Also called face value, nominal value, or redemption value.

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